What the Pros Say: Time to Diversify

Monday, Oct 6, 2008  |  Updated 12:31 PM PDT
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As stock markets across the world bounce around with each twist and turn of the plan for a $700 billion bailout package for U.S. financial companies, global experts are recommending that investors add more diversification to their portfolios.

Look to Land and Hedges

Investors should be fully diversified to include exposure to real estate and hedge funds, say Joe Terranova, chief alternative strategist at Virtus Investment Partners and Diane Garnick, investment strategist at Invesco.

Head for Dividends

In troubled times, cyclical stocks still offer value on the short side, and stay close to stocks with high dividend yields and strong cashflow on the long side, advises David Chon, founding partner at Atlas Capital Management.

Gold at $1,500 in 2 Years

Aaron Smith, managing director at Superfund Financial, sees gold as a good bet as he believes it will rise to $1000 an ounce by year-end, and $1500 in two, three years' time.

Safe-Haven Plays in Bonds

Investors looking for long-term safe-havens should buy supranational bonds like the World Bank and people looking for pure corporate debt should steer clear of financials, Marc Ostwald from Monument Securities, told CNBC Wednesday.

For more stories from CNBC, go to cnbc.com.

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